Is N S D L overvalued or undervalued?

As of 29 August 2025, the valuation grade for N S D L has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 72.17, an EV to EBIT of 69.70, and an EV to EBITDA of 63.13. These figures suggest that investors are paying a premium for the stock relative to its earnings and cash flows.
In comparison to peers, N S D L's valuation metrics stand out unfavorably; for instance, Bajaj Finance has a PE ratio of 31.3 and an EV to EBITDA of 17.84, while Life Insurance boasts a PE of 11.08 and an EV to EBITDA of 8.57. This stark contrast highlights N S D L's overvaluation within the capital markets industry. Additionally, the recent stock performance shows a decline of 2.92% over the past week, compared to a smaller drop of 1.84% in the Sensex, further reinforcing the notion that the stock is not currently a favorable investment.